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"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Friday, December 2, 2011

China's Zhu Sees 'Grimmer' World Situation Than in 2008 Crisis

China's Zhu Sees 'Grimmer' World Situation Than in 2008 Crisis
BusinessWeek
1 (Bloomberg) -- Zhu Guangyao, a vice Chinese finance minister, said the world is in a “grimmer and more challenging” situation than during the global financial crisis that started in 2008. He spoke at an economic conference in Beijing today. ...

Is There Contagion Among Peripheral Eurozone Countries?
Seeking Alpha
In the past few days and weeks, discussion has picked up about the possibility of contagion in and emanating from the Peripheral eurozone (PE) countries; Portugal, Spain, Ireland, Italy, and Greece. By looking at the Thomson Reuters Indices for the ...

S&P Speculative-Grade Default Rate Declines In November
Wall Street Journal
Standard & Poor's said its 12-month trailing speculative-grade corporate default rate declined in November, reversing the prior month's increase. The default rate fell to 1.96% last month from 2.06% in October. The ratings firm said the default rate is ...

Nicolas Sarkozy promises no eurozone member will default
Telegraph.co.uk
Nicolas Sarkozy pledged that no other eurozone country will be allowed to default in a passionate speech aimed at shoring up Europe's shattered markets. Admitting that France had "spent too much and often badly", Mr Sarkozy pledged an "immense ...

Secondary Sources: Contagion, Health-Care Jobs, Stress Tests
Wall Street Journal (blog)
By Phil Izzo –Contagion: Greg Ip says US banks have largely avoided contagion from Europe, thanks in large part to the Fed. ” This is partly because America's banks are reasonably healthy. They have significantly bolstered capital since 2008 and now ...

Contagion Catastrophe
National Journal
“The precipitating event for the global financial crisis and the Great Recession was the bankruptcy of a single, relatively small broker-dealer, Lehman Brothers. The bankruptcy of a nation as large as Italy would be many times more severe,” says Karl ...

Default Recoveries Top Average in Latest Cycle, Moody's Says
BusinessWeek
The 2009-2010 default cycle was more severe than the previous two, Moody's said, because it was associated with the Great Recession, the credit crisis and the housing slump. The US speculative-grade default rate peaked at 14.6 percent in November 2009, ...

Chile's central bank: contagion is here
Financial Times (blog)
Others believe signs of eurozone contagion in the form of worse-than-expected industrial output, on the back of rising inflation in November, may spark a 25-point cut this month. “Sooner or later,” De Gregorio says, Chile will feel the impact of the ...

Risk of Europe Contagion Becoming 'Very Real,' Nasution Says
BusinessWeek
Europe is seeing broad-based financial-market disruption and is undergoing a “true financial crisis,” Bank of France Governor Christian Noyer said in Singapore yesterday. The economic outlook in Europe and the rest of the world has “significantly ...

Analysis - Egypt fiscal crisis to pile pressure on army
Reuters Africa
That is a combustible mix for any cabinet and may encourage the army to seek to distance itself from Egypt's economic woes and give the new government far more powers before it becomes too tarred with the brush of a financial crisis. ...

Mozambique: Portuguese Financial Crisis Will Not Stop Cooperation
AllAfrica.com
Lisbon — Mozambican President Armando Guebuza has said that the serious financial crisisaffected Portugal is just a challenge that will not prevent this country from cooperating with Mozambique. Speaking in an interview with the Portuguese paper ...

Artist rips into the financial crisis
Reuters Video
What do the financial crisis and art have in common? William Powhida. Hear the artist describe his work to Reuters' Felix Salmon and Newsweek's Blake Gopnik.

Hope Creek Faces Financial Crisis
WQAD
Hope Creek Care Center, which is run by Rock Island County, is facing a financial crisis and officials with the Rock Island County Board say the state is to blame. During a press conference Thursday, December 1st, 2011, County Board Chairman Jim ...

Preventing new financial crisis requires action
Yuma Sun
It was therefore good news Wednesday that the world's central banks, including the US Federal Reserve, agreed on concerted action to try to head off a looming credit crisis. Basically, these super banks agreed to assure access to US dollars — the ...

Aon Introduces Tenant Rent Default Coverage
Insurance Journal
Aon has partnered with QBE Insurance Group to offer a product that will reimburse US landlords for lost incomes when tenants default on rent payments. “Rent default coverage has been sold overseas for years, but has not been available in the US until ...

Who Is Too Big to Fail Now?
Wall Street Journal
Although that has since eased, especially in the wake of Wednesday's central-bank-induced markets rally, the cost of insuring against default by Morgan is still elevated—and remains higher than the cost of protection on big French banks themselves. ...

Insurance investors at risk of euro hit - Swiss Re
Reuters
By Myles Neligan LONDON Dec 1 (Reuters) - European insurers could face losses big enough to wipe out a quarter of their shareholders' equity if the euro zone's most critically-indebted nations were to default, according to Swiss Re, the world's No.2 ...

Moody's: Historical Default Recoveries Average 54.5%
Barron's (blog)
Moody's found that despite the severity of the credit crisis, the great recession and the 2009 spike in speculative-grade defaults, the latest default cycle has been normal in terms of investor recoveries on defaulted debt. ...

Arena default could affect CWU
Daily Record-News
Central Washington University is one of the bond holders for the Town Toyota Center in Wenatchee, which defaulted today on its $42 million bond payment. The university's $1.6 million investment was purchased in June 2009, said Linda Schactler, ...

nourishing obscurity » How the PIIGS manage
By Chuckles
How the PIIGS manage. Posted on December 1st, 2011 by Chuckles. Some years ago a small rural town in Spain twinned with a similar town in Greece. The Mayor of the Greek town visited the Spanish town. When he saw the palatial mansion ...
nourishing obscurity

Bass: ECB Will Print Post-Default | The Stock Sage
By Robert Sinn
“we have all been programmed to think that we will always be saved from default in a post-Lehman world……EU members know that they will be required to print money in order to re-capitalize their systems. The $18 trillion dollar question for ...
The Stock Sage

Fed Relies on Bacon to Solve the PIIGS Crisis
By Robert Wenzel
27 at the New York Fed headquarters addressed the fallout from the financial crisis in Europe. Mr. Bacon, who was asked by Fed staff members to lead the discussion, began by saying he felt a Greek default was "likely" and he believed there ...
EconomicPolicyJournal.com

Risk Sharing and Financial Contagion in Asia: An Asset Price ...
By repec
This paper assesses financial integration in Asia in terms of risk-sharing benefit versus financial-contagion cost. We construct a new measure of risk sharing based on a term structure model, which allows identification of realized stochastic ...
PoliEcon

Mortgage default processing firm tied to Baum also shuts down ...
By KERRI PANCHUK
Pillar Processing, an Amherst, N.Y.-based document processing firm tied to the law firm of Steven J. Baum, is closing down and laying off 586 staff members, according to a Worker Adjustment Retraining and Notification notice filed with the ...
HousingWire